Profit of "Prefab" increases 60% in the first semester

Construction material maker "Prefab" Bucharest (symbol: PREH) reported a net profit of 777,791 lei in the first semester, up 59.72% YOY.

Turnover fell from 31.84 million lei, in H1 2011, to 26.88 million lei, in H1 2012, a reduction which is first of all caused by the drop in delivery prices, amid the current economic context, as well as due to the drop in the volume of sales, as this time of year, demand for prefabricated products drops, the company's report states.

In H1 2012, "Prefab" had total revenues of 32.67 million lei, representing 84.38% of the revenues earned in the similar period of 2011, and total expenses of 31.71 million lei, representing 83.28% of last year's expenses over the same period.

The operating earnings after the first semester amount to 2.84 million lei, up 142.87% YOY from 1.17 million lei.

In H1, the company had 514 employees on average. Wages and social security expenses fell 24.9% YOY to 4.73 million lei.

The financial loss, recorded in the first half of the year, is 1.887 million lei, compared to 527,734, at the end of June 2011. According to the financial statement of the company, this is the result of the destabilization of the EURRON exchange rate, amid the current economic and political crisis.

On June 30th, "Prefab" had 48.81 million lei in receivables, up 32.5% YOY. Trade accounts receivables account for the bulk of that amount, (78.12% - 38.13 million lei).

The company had was 65.43 million lei in outstanding debts at the end of H1, up 10% YOY compared to the end of June 2011. Short term bank loans account for 46.54% of the total debt, long term debts account for 41.03%, and 9.35% comes from trade debts.

Between January and June, the company conducted stock buybacks.

The investment program, proposed by the company, for this year, will cost more than 45 million lei.

Aside from the projects "The development of a cogeneration plant intended to improve the energy efficiency of SC Prefab SA", a project worth 22.4 million lei (5.25 million Euros), and "A plan for the rational use of energy - A project to improve the energy efficiency of Prefab", which costs 1.2 million Euros, the company will continue to invest in the modernization of the installations and of the equipment of the Aerated Autoclave Concrete Block division, in the environment protection installation, as well as in the solar-panel heating system, modernizations at the "Premo Pipe Division", room thermal treatment installations, metallic stencils, etc.